If you're concerned about saving for retirement – and also want flexible retirement income options, including income for life – Signature 7 Annuity may be a good choice.
Signature 7 Annuity provides the typical features of fixed index annuities – including principal protection against market downturns, the potential for tax-deferred growth, options for lifetime retirement income, and a death benefit for your beneficiaries.
While you’re saving for retirement, Signature 7 gives you:
- a choice of six index allocation options – including an exclusive Allianz index, plus
- a fixed interest allocation for steady, predictable interest.
And when you’re ready to start receiving income, the Signature 7 offers:
- the flexibility to take 10% of your premium as penalty-free withdrawals in any year you don't place premium in your annuity, and
- access to the money in your contract through a penalty-free lump-sum withdrawal after just seven years.
Issue age and minimum
You must be between the ages of 0-80 in order to purchase Signature 7 Annuity.
The minimum initial premium payment is $20,000 for qualified and nonqualified money.
The participation rate is 100% guaranteed for the life of the contract. This means we use the entire percentage of index change when we calculate the indexed interest rate. Caps or spreads would still apply. The cap is the maximum percentage of index change we use for a specified time period to determine how much interest we credit to your annuity in a given contract year. A spread is the amount we subtract from the percentage of change calculated for an index to determine how much interest we credit to your annuity in a contract year.
Call your Allianz financial professional for current caps, spreads, and interest rates.
Annual point-to-point with a cap: S&P 500® Index, Russell 2000® Index, Barclays US Dynamic Balance Index II
Annual point-to-point with a spread: Barclays US Dynamic Balance Index II
Monthly sum: S&P 500® Index, Russell 2000® Index
A fixed interest allocation is also available.
Access your money
With our penalty-free withdrawal option, after the contract anniversary following your most recent premium payment, you can take up to 10% of the Signature 7 Annuity contract's paid premium each contract year in one or more withdrawals that are free from surrender charges.
If you want to access all your money in a lump sum, Signature 7 gives you that option. Anytime after your seventh contract year, you can take your annuity’s full accumulation value. Withdrawals reduce contract values and the value of any income and death benefits. Distributions are subject to ordinary income tax and, if taken prior to age 59½, a 10% federal additional tax may apply.
Signature 7 has a seven-year surrender charge period (8.5%, 8.0%, 7.0%, 6.0%, 5.0%, 4.0%, 3.0%, 0%). The surrender charge percentage will decrease 1/12 of 0.5% on each of the first 12 monthiversaries. On each subsequent monthiversary, the surrender charge will decrease by 1/12 of 1%. On day one of contract year 8, it will be zero.
If you keep your contract for at least five contract years, you can choose to receive annuity payments, which are the payments we make back to you over a period of time, based on your accumulation value in any of the following ways:
Installments for a guaranteed period – You can choose to receive annuity payments in equal installments for a period from 10 to 30 years.
Installments for life – You have the option to receive annuity payments in equal installments for the rest of your life. Payments end upon your death.
Installments for life with a guaranteed period – You can choose to receive annuity payments in equal installments for the rest of your life. Upon your death, annuity payments will be paid to your beneficiary for the balance of the guaranteed period, the same way as you previously selected.
Installments for a selected amount – You may receive annuity payments in equal installments of an amount that you choose, as long as the payments last for at least 10 years. Payments continue until your accumulation value is gone.
Joint and survivor – You can have equal installments paid until your death, then continue to be paid to your survivor until his or her death.
If you die before you start receiving annuity payments, your beneficiary(ies) will receive a death benefit. The death benefit will be the greater of your annuity's accumulation value or guaranteed minimum value.
Your beneficiary(ies) can choose to receive your contract’s death benefit either as a lump sum (a single payment) or as annuity payments over five years or longer.
Current MVA reference rate: 2.49 % as of 4/29/2016
Uses the yield of the Barclays US Intermediate Corporate Bond Index.
Talk to your financial professional to see if Signature 7 Annuity is appropriate for you. Here are some questions they can help answer:
- How are the annuity’s principal and any credited interest protected?
- How can this product provide income for life and assist with the rising cost of living?
- What backs up any guarantees available with this product?
- What else should I consider that might impact my retirement?